FIRST LIVINGSTONE AND LABOUR ROW LOOMING

12.00.00am GMT Wed 7th Jan 2004

During ODPM Questions in the House of Commons, Local Government Minister, Nick Raynsford, made it clear that if the newly Labour London Mayor holds to his current plans to increase Londoners' Council Tax by 12%, this would be inconsistent with Government policy.

The Mayor of London's foreword to his 2004-05 Budget Consultation document published last month (with a response date of 15th January), says: 'Current estimates are that the cost of my budget proposals to Band D households will be 52p a week, an increase of 12 per cent'.

Commenting, Liberal Democrat Candidate for Mayor of London,

Simon Hughes MP, said:

"The remarriage of yesterday afternoon may already be looking like a bad idea.

"Unless two-thirds of the London Assembly vote down the Mayor's Budget, the Mayor can impose an increase of his choice. Nick Raynsford made it clear today that the Mayor's current plans do not meet the Government's expectations of low single figure increases.

"It has not taken long for the differences between Livingstone and the Labour Government to become very obviously clear."

ENDS